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Thu May 2, 2013, 02:39 AM

Detroit spending millions on consultants in turnaround effort

Source: Detroit Free Press

Detroit has agreed to spend nearly $14 million since December to contract nine firms to provide a range of financial and legal services to help the city overcome its staggering deficit and costly long-term liabilities.

More than $3 million of that came in hiring emergency manager Kevyn Orr’s former law firm last month.

While Detroit’s turnaround team continues to expand, City Council members are questioning the costs and wondering exactly who is in charge of the consultants.

“My concern was that we’ve brought in all these consultants, and I don’t know that it’s entirely clear to anybody exactly what they’re all doing and who’s monitoring them,” Councilman Kenneth Cockrel Jr. said during Mayor Dave Bing’s budget presentation on April 12.

Read more: http://www.freep.com/article/20130502/NEWS01/305020054/Emergency-manager-Detroit-lawyers-Kevyn-Orr



Disaster capitalism, anyone?

15 replies, 1912 views

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Response to alp227 (Original post)

Thu May 2, 2013, 02:54 AM

1. Long term popcorn....



Unless you live there. Then it's more like

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Response to alp227 (Original post)

Thu May 2, 2013, 03:02 AM

2. More like fascism and a dictator. /nt

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Response to alp227 (Original post)

Thu May 2, 2013, 03:25 AM

3. I've worked for 2 companies that brought in firms to "save the day"...

Folks in suits and ties walking around the office and having meetings with the higher-ups (ala Office Space).
It didn't work the two times I experienced: layoffs, layoffs, cutbacks, layoffs...company sold.
Good luck Detroit!

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Response to tofuandbeer (Reply #3)

Thu May 2, 2013, 06:05 AM

6. In my experience, "consultants" are brought in who are paid to agree with whatever

conclusions and actions the management has already decided on. The consultants turn these (often flawed) ideas into PowerPoint slides and then management can act like it wasn't their decision. And they can act like it is based on some kind of expertise and/or research.

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Response to KurtNYC (Reply #6)

Thu May 2, 2013, 01:19 PM

14. Ah, interesting. Thanks.

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Response to alp227 (Original post)

Thu May 2, 2013, 03:26 AM

4. Lawyers Don't Do Consulting Work

So why are they called consultants? I'm sure their primary purpose is to break existing contracts, specifically labor agreements. The Council members are doing the right thing by making public what the consultants are charged with doing as well as the progress toward those ends. They need to keep close focus on the work of the lawyers.

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Response to alp227 (Original post)

Thu May 2, 2013, 03:47 AM

5. consulting is a way of giving money to your friends.

I mean, I was a consultant, and did work, but most of the higher level consultants that I met just recited the usual buzz words of the times and did nothing worth the money.

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Response to alp227 (Original post)

Thu May 2, 2013, 07:07 AM

7. And where is that money going to come from?

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Response to alp227 (Original post)

Thu May 2, 2013, 08:10 AM

8. And so the looting begins... n/t

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Response to alp227 (Original post)

Thu May 2, 2013, 08:30 AM

9. It's actually just plain capitalism

This is how it goes. No qualifying adjectives like 'disaster' or 'rampant' necessary.

Don't worry, the parts of the country that are still suffering under the illusion that the predatory aspects of capitalism can somehow be reined in will learn soon enough too. Detroit etc are the canaries in the coal mine. Used up and spit out. Now being pillaged by those with mega-money who somehow still need more. A modern gilded age in a few neighborhoods while the rest of the country becomes a rust belt and dust bowl with shrinking wages and no benefits.

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Response to Cal Carpenter (Reply #9)

Thu May 2, 2013, 08:57 AM

11. "No qualifying adjectives like 'disaster' or 'rampant' necessary"......

THIS is what I've been trying to preach for years now. This IS capitalism. The few decades of "regulated" capitalism (few in comparison to the centuries of the real thing) were just an interlude, not the opera.

Regulating capitalism is like riding a tiger. It's almost impossible to do and you're always in danger of being eaten.

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Response to socialist_n_TN (Reply #11)

Thu May 2, 2013, 09:14 AM

13. Yep, like riding a tiger.

That's a pretty good analogy.

The myths about capitalism being logical, sustainable, beneficial, natural, those myths are so strong. But at this point, a step back and a look at real conditions around the country and the world make the truth very clear.

At some point the truth of capitalism will overwhelm the propaganda in the US. I don't know when or how, but in the meantime it is tough times. Tough fucking times. And despite the 'recovery' more and more people are hitting those tough times.

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Response to alp227 (Original post)

Thu May 2, 2013, 08:35 AM

10. Having their friends loot any federal funds that were supposed to help the local detroit people!!

And state funds!

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Response to alp227 (Original post)

Thu May 2, 2013, 09:01 AM

12. Bookmarking this OP for the next person who says that EMs are supposed to fix Detroit's fiscal

EMs are a way to subvert democracy and saddle communities with obligations and debt. Remember Confessions of an Economic Hitman?

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Response to alp227 (Original post)

Thu May 2, 2013, 01:25 PM

15. So, basically the repubs are running this just like the wars?

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